Anti-Money Laundering/Counter the Financing of Terrorism (AML/CFT) Policy2017/08/31 13:00:40Announcements Article 1 Purposes and Basis. In view of the fact that money laundering will undermine the development of digital asset trading, facilitate and breed corruption, pollute social morality, damage the legitimate rights and interests of Users, destroy the foundation for the sound operation of digital assets trading Platforms, increase the legal and operational risks of digital assets trading Platforms, KuCoin formulates these Rules in accordance with the User Agreement of the KuCoin Website, the User Agreement of KuCoin APP and other relevant documentation, so as to prevent money laundering and terrorist financing and fully comply with relevant regulations against money laundering and terrorist financing. By the very nature of its businesses, KuCoin will have a portfolio of clients across the globe. This international presence may trigger queries or requests for information from other law enforcement authorities. KuCoin shall therefore abide to the different laws and legal requirements imposed by the authorities in Seychelles. These rules outline the procedures to be followed in order to prevent money laundering, terrorist financing and corruption. KuCoin does not wish to be manipulated by money launderers or terrorists or to become associated with money laundering or terrorism in general. Its aim is not merely to comply with its legal obligations, but to effectively minimise the risk of exploitation by criminals. Thus, the anti-money laundering, terrorist financing and corruption policies are based on the requisite highest standards. Article 2 Scope of Application. These Rules shall apply to all Users trading on the website of KuCoin and the APP thereof (hereinafter referred to as "the Platform"). The Users shall implement the provisions of these Rules in accordance with the anti-money laundering and anti-terrorist financing laws and regulations of the country or region where they are located and within the scope prescribed by the laws and regulations of the region or country where they are located. Where there are stricter requirements in the country or region where the Users are located, such requirements shall prevail. These rules are governed by and shall be construed in accordance with the laws of Seychelles. Article 3 Fight Against Money Laundering and Terrorist Financing. This refers to activities with respect to which measures have been adopted pursuant to relevant laws, relevant rules and regulations, for the purpose of preventing money laundering activities that are carried out by offenders through the Platform for the purpose of covering up and concealing the source and nature of the proceeds and profits that such offenders obtain through such crimes as those relating to narcotics, organized crimes, terrorism, smuggling, graft, bribery, financial fraud, breach of financial regulation and order, inter alia. Article 4 The Platform’s Rules and Regulations against Money Laundering. The rules and regulations of the KuCoin against money laundering (including terrorist financing; the same hereafter) include these Rules, sections concerning money laundering in the User Agreement of KuCoin Website and the User Agreement of the KuCoin APP, Measures for the Management of Large-sum Transactions and the OTC Platform Guidelines for Users against Money Laundering and Terrorist Financing. In the event of any conflict between these Rules and the sections on money laundering in the User Agreement of KuCoin Website and the User Agreement of the KuCoin APP, these Rules shall prevail. In the event of any conflict between these Rules and Measures for the Management of Large-sum Transactions and the OTC Platform Guidelines for Users against Money Laundering and Terrorist Financing, such measures and guidelines shall prevail. Article 5 Basic Principles of the Platform against Money Laundering. The Platform monitors User risks according to the following principles:(1) The principle of comprehensiveness. The Platform will take into account all kinds of risk factors on the basis of which Users may be suspected of money laundering, and monitor risks of all Users in an appropriate manner. (2) The principle of prudence. On the basis of fully understanding the Users, the Platform will improve its ability to authenticate User identities, and monitor User risks in a prudent way. (3) The principle of sustainability. The Platform will pay appropriate attention to User risks and respond to risks on the basis of actual and specific circumstances of each risk. (4) The principle of confidentiality. User identity information, transaction information and risk level held by the Platform shall be kept strictly confidential and shall not be provided to any entity or individual unless it is required by law or regulatory authorities.(5) The principle of hierarchical management. The Platform will regularly review the basic information of the Users according to the risk level of each User. And the review of Users with a higher risk level shall be stricter than that of Users with a lower risk level. Article 6 Responsible Organ. The Platform carries out operations against money laundering via a guidance group for money laundering affairs and a team for advancing the fight against money laundering, each of which shall consist of members from the Platform’s risk control and compliance departments.Article 7 Functions of the Responsible Organ. The guidance group for money laundering affairs is responsible for planning, guiding and coordinating the money laundering affairs of the Platform. Its specific responsibilities include the following:(1) to review and approve the Platform’s money laundering policies, work plans and work reports;(2) to promulgate and update the guiding principles and rules of the Platform against money laundering;(3) to review the Platform’s and its sub-websites’ organizational structure and designation of responsibilities against money laundering; (4) to design and complete procedures for internal inspection and control of transactions; (5) to study major and difficult problems relating to money laundering and to form solutions.The staffing structure of the team for advancing the fight against money laundering shall be determined on the basis of regulatory requirements and location-specific conditions. The main responsibilities thereof include: (1) to implement relevant rules against money laundering and plans of the guidance group for money laundering affairs;(2) to implement various assignments;(3) to analyze and identify the identity and background of any User with a suspicious transaction as well as each such suspicious transaction;(4) to assess and adjust the risk level of Users;(5) to conduct due diligence and continuous supervision of Users;(6) to review and regularly examine transactions that have occurred;(7) to report suspicious transactions to the competent authorities;(8) to assist in the investigation at the request of any competent authority. Article 8 Due Diligence. Following the principles of diligence and understanding your Users, the Platform conducts due diligence on all Users. For high-risk Users, the Platform has the right to conduct enhanced due diligence. Article 9 Documents Submitted by Individual Users. As is required by the laws and regulations of different jurisdictions, the information that the Platform collects on individual Users from different countries or regions may vary. In principle, an individual User is required to provide the following information and data in accordance with relevant regulations of the Platform against money laundering:(1) personal name;(2) home address;(3) date of birth;(4) nationality;(5) telephone number;(6) e-mail address;(7) a photo of the User taken within the six months from the date of registration with the Platform;(8) photocopy of a valid Identity Card or a valid passport of the User; and(9) other information or documents requested by the Platform. Article 10 Documents Submitted by Institutional Users. As is required by the laws and regulations of different jurisdictions, the information that the Platform collects on institutional Users from different countries or regions may vary. In principle, an institutional User shall submit the following information and data in accordance with the Platform’s relevant regulations against money laundering:(1) name of the institution;(2) registered office address of the institution;(3) contact information of the institution;(4) articles of association of the institution; (5) description of the equity structure and ownership of the institution;(6) legal representative of the institution;(7) place of residence of the legal representative of the institution;(8) contact information of the legal representative of the institution;(9) the institution's business license;(10) the institution’s consent to open an account with this Platform;(11) letter of authorization by the institution;(12) a copy of the valid Identity Card or a valid passport of the legal representative of the institution; and(13) other information or documents to be provided upon request by the Platform.Article 11 Languages of the Submitted Documents. The Platform only accepts documents prepared in Chinese or English. Users who submit documents prepared in any language other than Chinese or English shall engage a properly qualified translator to translate such documents into Chinese or English and have the translated version thereof properly notarized. Article 12 Submission of Document Copies. Where a copy of a document is submitted, the copy shall be properly checked against the original of such document. A copy of a document may be submitted if the copy has been notarized and certified as a true and accurate copy of the original document. The certification mentioned under this Clause includes, but is not limited to, certification by an embassy, judicial certification, certification by local magistrate, or certification by a notary public. Article 13 Photograph-based Verification. Users shall complete a photograph-based verification procedure as required by the Platform: the User shall have a photograph of himself/herself taken, which shows the User holding his/her identity document and a statement that the User opens his/her account with the Platform according to his/her free will. If the photograph of the User is not clear enough or fails to conform with the requirements of the Platform, the Platform shall have the right to refuse to reject the User’s registration. Article 14 Identification of the Beneficiary and the Controller. The Platform has the right to identify the actual or beneficial owner or controller of the account of a User. In the case of registration of an institutional User, the shareholder(s) holding more than 10% of the shares of the institution shall provide relevant materials and undergo identity verification according to the requirements of the Platform. Article 15 Identity Authentication by an Entrusted Third Party. Where a sub-website of the Platform entrusts a third-party institution to authenticate a User's identity, the third-party institution shall meet the following requirements:(1) the third-party institution has adopted necessary measures for User identification and storage of identity information in accordance with laws and regulations on money laundering and the Platform’s relevant rules and regulations against money laundering;(2) the third-party institution’s supply of User information to the sub-website is not subject to any legal or technical obstacles;(3) when it engages in business operation, the sub-website is able to promptly obtain the User information provided by the third-party institution and, if necessary, obtain the User's valid identity certificate, as well as the original, photocopy or photographic copies of the identity documents from the third-party institution. Article 16 Review of User Documents. The Platform will verify and record the relevant information submitted by the Users in accordance with the User identification system under the Platform’s relevant regulations against money laundering. If the Platform has any doubt about the information submitted by any User, it has the right to ask the User to provide other documents or consult with relevant competent authorities or departments for verification. Article 17 Classification of User Risk Levels. The Platform classifies Users into three categories, i.e., low-risk Users, medium-risk Users and high-risk Users according to the materials submitted by the Users, and on the basis of such factors as the geographical location of the Users, the industries they are involved in, background of the shareholders of Users, if any, and whether Users are prominent public figures, inter alia. The Platform reserves the right to adjust the grading of Users. Article 18 Identification of High-risk Users. High-risk Users refers to Users who comprise any of the following high-risk factors and are identified as high-risk Users after a comprehensive evaluation by the Platform. High-risk Users include:(1) Users who have been subject to or are currently under criminal or administrative investigation, excluding Users who are investigated in connection with any civil proceeding or emergency dispute;(2) Users who are prominent public figures, or whose controlling shareholders, actual controllers and/or actual beneficiaries are prominent public figures;(3) Users who are from high-risk countries or regions, or their controlling shareholders, actual controllers and/or actual beneficiaries are from high-risk countries or regions;(4) Users who are identified as key suspicious Users according to relevant procedures of the Platform;(5) Users who are engaged in business operations in industries subject to a relatively high level of money laundering risks, such as jewelry, precious metals trading, currency exchange, pawn brokerage, money remission, nightclubs and the arms industry, etc;(6) Users who engage in intensive trading within a certain period of time, which is seriously inconsistent with the situation on the digital assets markets; and(7) Users who engage in unusual operations. Article 19 Identification of Low-risk Users. Low-risk Users refers to those Users who are identified as low-risk Users after a comprehensive evaluation by the Platform. Low-risk factors include:(1) Users that are financial institutions or well-known companies;(2) Users who are natural person and of whom the Platform has proper understanding through verification and who carry a relatively low risk of money laundering; (3) Users who are reviewed and approved by the Platform’s risk control and compliance departments. Article 20 Identification of Medium-risk Users. Medium-risk Users refers to Users other than those specified under Articles 18 and 19 of these Rules. Article 21 Adjustment of Risk Level Grading. After the establishment of business relations with a User, the Platform will pay sustained attention to their identity and transaction status. Should there be any change or abnormality in such identity or status, or the Platform becomes suspicious about any of the information that it has by then obtained on the User, the Platform will re-identify the User identity and adjust the risk level grading of the User in a timely manner. The Platform has the discretion to adjust the User’s risk level grading and may do so without providing the User with any reason. Article 22 Monitoring of High-risk Users. For Users in the high-risk category, the Platform will conduct a review every six months to update the basic information on the Users’ identity and ascertain their sources of funding, use of funds, financial standing or business status. If the Platform, on the basis of a comprehensive assessment during the regular review of a high-risk User, deems that the User and the transactions in the User’s account with the Platform are normal, it may lower the risk level of such User. Article 23 Continuous User Identification. Throughout the business relationship with each User, the Platform will adopt continuous User identity verification measures so as to keep following the User's transaction status, and if the Platform finds that the User's identity information or information has expired and the User fails to update such information or data within a reasonable period of time without providing any justifiable reason, the Platform will take measures to suspend the service for the User. Article 24 Re-identification of Users. Under any of the following circumstances, the Platform has the right to re-identify a User’s identity:(1) where the User requests to change his/her name or designation, the type of his/her identity certificate(s) or identification documents(s), ID Card number, registered capital, business scope or legal representative;(2) where there is any abnormality in the User’s conduct or trading;(3) where the User’s name is the same as that of any criminal suspect, money launderer or terrorist financier;(4) where the User is suspected of engaging in money-laundering or terrorist financing;(5) where there is any inconsistency or contradiction between the information on the User that the Platform acquires and relevant information that the Platform already has in its possession;(6) there is any doubt about the authenticity, validity and/or integrity of the User’s information and materials previously obtained;(7) other circumstances under which the Platform deems it necessary to re-identify the User's identity. Article 25 Trading Limits. The Platform has the right to set and adjust at any time the maximum amount of currency that may be withdrawn for scheduled transactions, according to the transaction security and actual conditions. Article 26 Identification of Suspicious Transactions. The Platform has the right to verify the following suspicious transactions and suspicious accounts:(1) dispersed transfer-in of digital assets followed by collective transfer-out thereof within a short period of time, or collective transfer-in followed by dispersed transfer-out within a short period of time, which is clearly inconsistent with the User’s identity, financing standing and/or business operation status;(2) where an account that has been inactive for a long time is suddenly reactivated, or there is a sudden abnormal in-flow of digital assets in an account with usually small amounts of digital asset flow, and a large amount of currency is withdrawn within a short period of time;(3) where a large number of accounts are opened or cancelled without any justifiable reason, and a large amount of currency is deposited or withdrawn prior to such cancellation of accounts; (4) there is any suspicious lump-sum deposit or withdrawal in the account of an User who is a natural person;(5) where the User engages in excessively frequent trading within a certain period of time, which is seriously inconsistent with the situation on the digital assets market; and(6) other suspicious trading situations identified by the Platform. Article 27 Identification of Terrorist Financing. If the Platform suspects that an User's transaction or attempted transaction is related to terrorism, terrorist crime, any terrorist organization, terrorist or people engaged in terrorist financing activities, it shall adopt appropriate measures, regardless of the amount of fund or value of assets involved. Article 28 Handling of Suspicious Conduct. When the Platform identifies the identity of an User, it shall have the right to adopt measures such as suspending any suspicious transaction, rejecting transaction applications, reversing transactions, freezing suspicious accounts, and reporting to the competent authorities if the Platform uncovers any of the following conducts on the part of the User: (1) the User refuses to provide valid identity certificates or other identification documents;(2) the User refuses to update his/her profile without any justifiable reason;(3) where, after necessary measures are adopted, the Platform still doubts the authenticity, validity and/or integrity of the User’s identity information;(4) the User forges or alters his or her identification documents to deceive the Platform to allow it to open an account with the Platform; or(5) the User refuses to provide a reasonable explanation for the suspicious conduct thereof, or the User’s explanation is obviously unjustifiable. Article 29 User Data storage system. The Platform establishes a system for the storage of Users’ identity information and transaction records, and properly preserves documents and data such as User identity information and transaction records so as to facilitate money laundering investigation and supervision and regulation, and prevent the loss, damage and disclosure of such information.Article 30 Scope of the storage of the Users’ Data and Transaction Records. User identity information and transaction data saved by the Platform includes the User identity information as provided, various data and records reflecting the User’s identity identification carried out by the Platform, as well as the data and information of each transaction and other data reflecting the actual circumstances of the transactions. Article 31 Term for the storage of User identity information and Transaction Records. The Platform shall keep User identity information and transaction records for specific terms depending on the following circumstances:(1) User's identity information shall be kept for at least five years, starting from the date when the business relationship between the User and the Platform ends;(2) transaction records shall be kept for at least five years, starting from the date when the transaction is entered into records;(3) if the User's identity information and transaction records involve any suspicious activity that is being investigated for money laundering, and the investigation into money laundering is not completed at the expiration of the minimum storage term as is specified in the preceding paragraph, the Platform will keep them until the end of the money laundering investigation; Article 32 Assistance to Judicial Investigation. If a judicial organ, law enforcement organ or other competent authority of a country or region submits a request to the Platform for assistance in connection with any investigation, the Platform shall have the right to cooperate with such investigation and provide relevant information and materials as is requested by such organ or authority, as the case may be. Article 33 Confidentiality in Anti-money Laundering. Any staff member of the Platform that comes across any information relating to anti-money laundering through his or her performance of duties relating to money laundering or his or her work shall strictly comply with confidentiality requirements and keep confidential all the User identity information, suspicious transactions, terrorist financing transactions and other information that he or she may obtain. Such staff member may not provide such information to any organization, individual or any unrelated staff member of the Platform. Article 34 Cautions to the Users. The Users shall pay attention to the following cautions:(1) the Users are forbidden from lending their account details to any other person;(2) the Users are forbidden from renting out or lending their identity certificates;(3) the Users are forbidden from renting out, lending or disclosing important personal assets information, such as the User's account details and password;(4) Users shall actively cooperate with the Platform in User identification. Article 35 Reports of Suspicious Conducts. Users of the Platform may report to the Platform if they find that any account may be engaged in money laundering or terrorist financing activities during trading on the Platform. Article 36 Interpretation. These Rules shall be interpreted by the Platform. Article 37 Effective Date. These Rules shall come into effect on the date of promulgation thereof.

User Identity Authentication Statement2019/12/29 21:57:14Read moreIn accordance with the current requirements of the Proceeds Of Crime Act, Anti Money Laundering and Counter Terrorist Financing legislation, it is mandatory for KuCoin to establish and maintain the records of the identity proof and fund source of all our clients before creating a business relationship. Be subject to the Anti Money Laundering and Counter Terrorist Financing legislation, KuCoin is required to constantly monitor the ongoing trades and identity proof of all the clients. Therefore, you might be requested to answer follow-up questions or finish in-depth customer due diligence process."To complete the KYC verification, users shall upload the identity document for verification purpose and guarantee that the information submitted is complete, true and accurate. The validity of the upload identity file shall be valid and all the identity information provided to KuCoin shall be completely true. Users should authorize any member of KuCoin group to verify the truthfulness of the information provided.

BCN: Turning to your clientele, which region/continent accounts for most of your business? JL: Kucoin is a global crypto exchange and has grown into one of the most popular crypto exchanges since 2017. As a people’s exchange, every region is significant for us. As you can see, Kucoin has established 19 local communities in North America, Europe, SEA, Africa, etc. Our 8 million users are located all over the world. Every region is a key market for Kucoin. We are committed to providing highly localized services to our users in different regions while exploring new markets which are short of crypto-related services but have huge development potential.

BCN: Where do you expect to see your traded volumes growing in the next few years and why? JL: Developing financial derivatives is a key direction for Kucoin in the next few years. We are committed to developing and optimizing products for people with different risk preferences. For example, we have launched Trading Bot, a free intelligent trading tool providing efficiency, convenience, and powerful strategies to cryptocurrency traders, especially for novices who have little trading experience but can help them quickly get to know the crypto world. For investors with a higher risk appetite, we are constantly optimizing services provided by Kucoin Futures. This August is also the 2nd anniversary of Kucoin Futures. Looking back on our first day, from the initial launch in August 2019, Kucoin Futures has become one of the top 10 global Futures trading platforms today. Currently, we support contract products of 60+ cryptocurrencies. The transaction is available on both web and app to meet the different needs of traders. The total number of registered Kucoin Futures users has exceeded three million. These are the best proof to show us a way for better development in the future.

BCN: In 2020, you launched your P2P trade for the Nigerian market. Do you still have this going on given that Nigeria essentially banned naira-to-crypto trades? JL: I noticed that the Central Bank of Nigeria announced a ban to local financial institutions on cryptocurrency purchase and trading in the country earlier this year. We have been paying close attention to this to ensure our services are following local policies. BCN: Is Kucoin fully regulated in places where it operates? JL: Kucoin is a crypto exchange registered in Seychelles. All of our activities are in compliance with local regulations. We are also actively seeking licenses in many markets, so as to offer a wider range of services to local users.

Crypto market in a crisis far worse than earlier onesIn an exclusive interview with Benzinga, Lyu also said the ongoing crisis in the crypto market was “a lot worse” than earlier ones and that it will take a major event or rational economic policies to help the ailing markets.“As a crypto exchange, we are open to cooperating with all prosecutors or regulators around the world but for a specific incident, we would like you to clarify with South Korean officials or regulators. Also, it is not our position to clarify this issue because as a crypto exchange, we are not in a position to figure out this whole thing, and we are just working to cooperate with the government and regulators as things go on,” Lyu said.Asked to comment if regulations will help drive up the prices of major crypto tokens, the CEO of the Seychelles-based company said the ongoing crisis is going to end differently than the previous ones because earlier, new projects came up in times of crisis that would bring the whole industry back to life.

Regulatory crackdown on Binance As global policy on the industry tightens, KuCoin stays attentive to regulatory trends in different regions for compliance operations. The CEO said that a regulatory crackdown against Binance is an “alert to other exchanges.” Lyu said that his company is registered in the Republic of Seychelles and is “following local regulations.”

Top futures trading platform KuCoin Futures was launched in August 2019. Since then, it has become one of the top 10 global Futures trading platforms. It supports contract products of over 60 cryptocurrencies and has more than 3 million registered users. KuCoin has established 19 local communities in North America, Europe, SEA, and other regions, providing users with 24/7 multi-language customer services and highly localized services. KuCoin Futures supports 13 languages to facilitate easy trade for global users. The exchange launched the industry’s first LITE version of the Futures platform to help many novice users easily experience Futures Trading. They have published various tutorials to lower the threshold of Futures trading and onboard users.

Adeyanju: That probably explains why you list a lot of altcoins—since most of your users are from emerging markets. But isn’t that too risky, considering these coins are susceptible to pump and dump schemes? Do you have measures in place to prevent or limit this susceptibility? Lyu: First, traders and investors must understand the risks and take personal responsibility before making investment decisions. The basic and most important recommendation is to check all the information about an asset and not buy coins that grow in price very quickly. In the investment field, risk and return are equal; expecting high returns will inevitably entail high risks That said, at KuCoin, we focus on quality while trying to bring a wider range of promising coins to the public. We have an expert research team who complete due diligence before listing coins, which ensures that we can prevent our users from most scams in the industry. But as I said before, this industry is full of uncertainties—including market impact and human factors. Users still need to understand these uncertainties before investing.

Adeyanju: You mentioned that KuCoin is taking regulatory compliance seriously. As you know, the original ideas that saw the birth of crypto revolved around decentralization and privacy. These ideas and regulatory compliance don’t always agree. How does an exchange balance the need to satisfy regulatory requirements while offering privacy and decentralized access to users that want these features? Lyu: First of all, with regard to regulation, I would like to say that technology is innocent and irreversible and that both blockchain technology and cryptocurrency exchanges have brought revolutionary advances and innovations to the world. These innovations have enabled the global free flow of value. I think regulation can ensure that this technology and innovation reaches the next level. The emergence of any new technology starts with a period of immaturity. The point of regulation is not to suppress new technologies and systems but rather to cultivate a favorable environment for further development. Also, the entire crypto industry doesn’t have to be fully decentralized to achieve its original intentions. In fact, centralization, as a feature, is what has helped crypto grow as fast as it has. That said, I think the decentralized and centralized markets can coexist. That’s why, although KuCoin is currently a centralized exchange, we are also developing some decentralized products. We recently launched funds to support Web 3.0 innovations such as DAOs, metaverse and NFTs. We also launched a decentralized wallet that will essentially serve as a gateway to the Web 3.0 world. Our wallet supports multi-chain aggregation, which makes it possible to transact with several types of crypto assets in one place. We intend to add DeFi, NFT and GameFi functionalities in the future.

Adeyanju: Was this strategy of listing altcoins pivotal to growing your userbase to the 18 million users you mentioned in your recent fundraising announcement? Lyu: Yes, that’s right. Listing promising altcoin is a big part of our strategy. From the early days, we figured that, while bitcoin and ether will continue to be the major tokens, most traders will want access to more tradable assets. That’s why KuCoin is one of the few exchanges that started to list many promising altcoins. But alongside this, we also spent the bear market of 2018/2019 strengthening our infrastructure and product offering. We introduced many new features like margin and futures trading, and we are also one of the first platforms to introduce staking services for proof-of-stake tokens. We also followed the market trend and introduced our own launchpad platform. These initiatives helped us attract many new users when the recent bull run arrived. Adeyanju: I’d like to go a little deeper into your strategy of listing altcoins. But let’s spend some time talking about where you’re headed as an exchange, especially after recently securing $150 million in funding. What’s next? Is there going to be a change of strategy? Lyu: In general, we will continue to be the people’s exchange just as our slogan says, and this means we will evolve ourselves on the basis of the needs of our customers. We will continue to find and offer the next crypto gem on our platform. Also, the industry is still in its infancy, and we need to bring in more users. KuCoin is focused on onboarding as many users as possible. I believe three major barriers prevent new traders from starting their crypto journey. The first one is policies and regulations. The second one relates to on-ramping from fiat to crypto. And the third one is about how to start the first trade. For the first part, the regulation part, KuCoin is trying to apply for licenses in many markets, and we’ve already gotten some of them. We are trying to expand our fiat on-ramp gateways for the second part. In November, we launched our fiat account feature, which allows users to deposit fiat such as euro and US dollar to the platform. We’ve also announced another fiat improvement relating to our integration of SEPA, which is quite popular in Europe. For the third part, which is about making the first trade, we noticed that many new traders could hardly understand the order book as well as terms like limit orders and stop orders. So we are trying to offer a simplified interface for them. We’ve also noticed that those who know how to make a trade still struggle to make trading decisions. That’s why we’ve introduced social trading features called KuCoin S, which allows users to get to know more about how other people trade and to get to know what is happening in the market. All this info could help them to make better trading decisions—to improve their chance of making a profit. On the product side, we will invest in improving our offerings in terms of social trading because we believe this is the trend of the future.

Ishan Pandey: In light of the ongoing Russia-Ukraine conflict, do you think Russia can utilize Bitcoin and other cryptocurrencies to get around sanctions imposed by other nations? Further, what would be the impact of the war on the cryptocurrency market?Johnny Lyu: The possibility of circumventing economic sanctions with the help of cryptocurrencies is rather similar to the possibility of laundering money received from illegal activities. First, there are well-established and operational KYC and AML procedures. Secondly, you first need to buy cryptocurrencies in significant amounts that would cater to a state's economy as large as Russia, then carry out transactions and sell them, exchanging them for fiat money. However, given the existing restrictions, this can only be done within Russia. In case of withdrawals from Russia, the reverse scheme will come into effect. But in both cases, there is a Russian financial institution at one end and its foreign partner. How many partners does Russia have, and whose banks can it refer to? I believe that the fears about circumventing sanctions with the help of cryptocurrencies are somewhat exaggerated.

Ishan Pandey: According to you, which jurisdictions are the friendliest for crypto businesses?Johnny Lyu: The regulation of cryptocurrencies in different jurisdictions started from different positions, often opposite ones. With differences in economic development strategies and maturity of the financial systems, each country has its own regulatory strategies for crypto. That said, the majority of countries are working closely and actively to find suitable solutions to better integrate digital assets and blockchain technology into existing financial systems so that they may show their value through regulation.Some countries are more willing to work with cryptocurrencies, while others are more prone to banning them. There is still no definitive positive position involving the full legalization of cryptocurrencies, although the list of crypto-friendly jurisdictions is constantly expanding.In the current situation, the positions of some states can alter diametrically rather quickly. Therefore, crypto businesses looking for convenient jurisdictions should be patient and monitor the situation and heed the experience of other companies.

Does KuCoin follow international regulations? KuCoin operates in the Seychelles and complies with local laws. We respect all laws and policies in other countries.

How safe are investors’ assets on the KuCoin exchange? At KuCoin, we’re very much vigilant of security and cyber threats, and we ensure that our exchange is safe for trading. KuCoin allows you to trade with confidence, knowing that your digital assets are safe on the exchange. Micro-withdrawal wallets, industry-level multilayer encryption, and dynamic multi-factor authentication are a few of the levels of protection that we employ. KuCoin offers 24/7 customer support via live chat and online ticket on its help center. The supporting staff are very responsive and patient. Also, KuCoin has established about 23 local communities in Europe, SEA and other regions, providing users with highly localized service and support.

Interview part two CJ: A recent trend among exchanges has been a battle to reduce fees. What do you think of this and how does KuCoin's strategy relate here? JL: This is great news for users around the world. In this regard, we have always prided ourselves on providing the lowest trading fees to global users, which is also strong evidence of KuCoin exchange's ambition to provide services to all categories of investors and lower the industry threshold for global users. We have reduced trading fees for users in all aspects. For example, we are currently offering new users a Newcomer Gift Package worth up to 500 USDT so that users can start their crypto journey smoothly. Users who hold the KCS can benefit from an additional 20% discount on trading fees. Users with different VIP levels and trading volume requirements enjoy corresponding fee reductions, etc. Trading fee discount coupons are also frequently provided to our users with different trading preferences, so a better trading experience at lower cost can be enjoyed in many aspects.

Interview part four CJ: Many exchanges, such as Binance, have had high-profile battles with regulators. Do you fear or welcome increased regulatory scrutiny in space? JL: It is the responsibility and obligation of every global exchange to abide by the laws, regulations and policies of different countries and regions, to fight against terrorism and to resolutely maintain the fight against money laundering. It is also essential to better push the cryptocurrency industry towards growth, and this is the basement that KuCoin holds and has also followed since the very beginning of its inception. Additionally, KuCoin closed a $150 million pre-Series B fundraising round, which will support KuCoin's global regulatory efforts to better serve 18 million users in over 200 countries and regions. Overall, we will continue to be the "People's Exchange", as our slogan says, which means that we will evolve according to the needs of our customers.

oinJournal (CJ): You launched several Euro trading pairs this week (which was very appreciated by me, coming from the Eurozone!). Why did you do this, and what do you think is the reason the euro has lagged so far behind the dollar when it comes to the rise of crypto? Johnny Lyu (JL): The European crypto market is one of KuCoin's key markets, and KuCoin is committed to providing an easy-to-use cryptocurrency trading service for European investors. In March, KuCoin integrated SEPA payments, allowing users to deposit EUR into KuCoin and track cryptocurrency purchases. To expand fiat-to-crypto trading services, KuCoin exchange adds EUR trading pairs that allow cryptocurrency users to make instant conversions between Euro and cryptocurrencies. By supporting these EUR-fiat trading pairs, KuCoin is strengthening its presence in the European crypto market, which continues to experience strong growth. As to why the EUR hasn't fared better than the dollar when it comes to the rise of cryptocurrency, it's firstly because the dollar, as a reserve currency world, is dominant in many areas. On the other hand, the cryptocurrency adoption metrics in the US market are much better than in the European market. According to the Into The Cryptoverse report published by KuCoin, as of March 2022, 27% of American adults between the ages of 18 and 60 are cryptocurrency investors. But in Germany, the most crypto-friendly country in Europe, the figure is only 16%. But good things take time, and I believe that as cryptocurrency adoption increases in the European market and more innovative products emerge, the EUR will rapidly progress to catch up with the dollar as far as the rise of cryptocurrency.

BTCM: User funds security has been the Achilles heel of the digital asset industry since its inception. Can you share how KuCoin handles its security infrastructure? Johnny Lyu: As a global exchange, security is one of our top priorities. We developed all the infrastructure and systems on our own to ensure its stability and security. We have plenty of security mechanisms to protect the crypto assets of our users and we are working with many third parties like Chainalysis and white-hats to improve the level of security. It is worth mentioning that we recently reached a strategic cooperation with Onchain Custodian, Singapore’s crypto asset custody platform. Onchain Custodian offers a custody service for the safekeeping of KuCoin crypto assets. The custodial funds are backed by Lockton, the world’s largest private insurance brokerage company, which means users’ assets on KuCoin will be double secured.

BTCM: Over the years, KuCoin has cemented itself as one of the most prominent crypto trading platforms in Asia. Is KuCoin considering expanding its business into other geographies? Johnny Lyu: Actually, KuCoin is one of the most global cryptocurrency exchanges, with about 20 global communities and 5 million users from 207 countries and regions. We are also constantly exploring international markets. To make it easier for global users to buy cryptocurrencies, we support three fiat gateways, OTC, Simplex and Banxa, with 33 fiat currencies for purchasing cryptocurrencies. Recently, our OTC Trading Desk added support for Canadian dollars (CAD), and so users can now use Canadian dollars to purchase cryptocurrencies such as BTC, USDT, and CADH. We will continue to globalize this process, and allow users all around the world to easily use KuCoin services, lowering barriers of entry to the crypto world.